PRESS COMMUNIQUÉ
Paris, 11 June 2002

The 2001 Annual Report of the OECD Nuclear Energy Agency

A pivotal year for nuclear energy at the international
level

In its 2001 Annual Report published today, the Nuclear Energy Agency (NEA)
notes that several substantive developments in the nuclear field, taken
in the wider context of energy and the environment, have helped make 2001
a pivotal year in the development of nuclear energy at the international
level. Several Member countries reviewed their energy policies, including
Belgium, Finland, the United Kingdom and the United States. In addition,
the European Commission issued a Green Paper on security of energy supply.
The role of nuclear energy was closely examined on this occasion.

Renewed interest in nuclear energy in several Member and non-member
countries has led to new initiatives in 2001 regarding the development
of innovative reactors and associated fuel cycles. The Generation IV
International Forum (GIF), initiated by the US and now carried out by
ten countries, aims at identifying nuclear systems meeting the sustainability,
safety, reliability and economic goals of the 21st century and the R&D
challenges for their deployment by 2030. During the "roadmap"
phase of the project, the NEA is providing support to GIF, drawing from
its expertise and authoritative knowledge.

Along similar lines, a report was published on Trends in the Nuclear
Fuel Cycle: Economic, Environmental and Social Aspects, which reviews
developments in the nuclear fuel cycle that may further improve the
competitiveness and sustainability of nuclear energy systems. Also completed
was the "Three Agency Study" on innovative reactor development,
undertaken jointly by the International Energy Agency (IEA), the International
Atomic Energy Agency (IAEA) and the NEA.

Trends towards electricity market deregulation were confirmed, inciting
producers to emphasise economic efficiency and cost reduction in their
business strategies. The NEA organised jointly with the International
Energy Agency (IEA) a workshop on "Externalities and Energy Policy:
The Life Cycle Analysis Approach", during which it was agreed that
incorporating external costs, or externalities, into energy prices was
an important step towards "getting the prices right".

At the end of 2001, 360 nuclear power units were connected to the grid
in OECD countries, generating approximately 24% of total electricity
supply. Eleven units were under construction: one in the Czech Republic,
four in Japan, four in Korea and two in the Slovak Republic. Plant lifetime
extensions were authorised or being planned in several countries. In
the next decade, total electricity generation in the OECD area is projected
to increase.

Steady improvement in the operational safety performance of nuclear
power plants in OECD countries continued in 2001, with no safety-related
events having been identified as directly associated with the introduction
of competition in the electricity market. However, regulatory bodies
in OECD countries continued to be concerned with maintaining an adequate
level of competence and research capability in the long run. In 2001,
the NEA continued to compare national experiences with a view to identifying
international solutions. In many countries, regulatory bodies are also
seeking ways to increase their effectiveness and their contacts with
stakeholders.

In the field of radiation protection, the most significant challenge
at hand is to better integrate radiation protection within current approaches
to risk governance. International principles of radiation protection
are therefore in the process of being reviewed. The NEA has contributed
to this effort by producing a discussion document addressing several
specific areas in which the system of radiological protection could
be adjusted to better meet governmental and social needs. Participants
at an international NEA workshop reflected on ways to involve various
stakeholders in national and international decision making, particularly
in areas concerning public health and environmental protection. In the
latter area, a series of international fora was developed so that future
policies represent international consensus, address national-level needs
and can be practically implemented.

In the field of radioactive waste management, important steps took
place in 2001 in a number of OECD countries in respect of geologic disposal
programmes, among them Finland, Sweden, the United States, Canada and
Germany. The NEA focused its attention on policy issues and public confidence
in this field. A meeting was held on the step-wise decision-making process
and several publications reviewed the concepts of reversibility and
retrievability of waste as they may apply to the planning and development
of engineered disposal facilities, as well as the role of underground
laboratories within national programmes.

Another focus for the NEA in this field was the need for establishing
and communicating technical confidence in the safety of deep geologic
disposal. A study on this topic was finalised for publication. In addition,
a workshop was organised in Finland on stakeholder involvement and confidence
in the process of decision making for the disposal of spent nuclear
fuel, as part of the NEA Forum on Stakeholder Confidence. Finally, an
international peer review was organised by the NEA, in co-operation
with the IAEA, of the US Department of Energy performance assessment
concerning the proposed site of Yucca Mountain (Nevada) for an underground
repository for spent nuclear fuel and high-level waste.